Screening Chinese Stocks with a Shortening MACD Histogram and High Turnover

Summary

This screening idea combines daily amplitude above 1, a shortening negative MACD histogram on a 15-minute chart, and prior-day turnover above 8%. The author interprets the range condition as a way to find volatile stocks, the shrinking negative histogram as a possible sign of a change in price direction, and turnover as a measure of market activity. The formula and sample workflow illustrate how the three conditions could be combined into a stock selection process.

The document cautions that turnover can shift sharply during unusual market conditions, and that amplitude alone may select illiquid stocks. It suggests adapting the turnover threshold and considering valuation, dividend yield, chart patterns, and moving averages. The material offers no historical test, trade rules, or measured performance, so the proposed signal interpretation remains unverified. Its code examples also mix data fields and screening concepts, making implementation details uncertain without independent checking.

Key ideas

• The screen requires daily amplitude above 1, a shrinking negative 15-minute MACD histogram, and prior-day turnover above 8%.
• The MACD condition is treated as a possible indication that downward momentum is weakening.
• The note warns that turnover can be distorted by temporary market events and that volatile stocks may be illiquid.
• It recommends combining the screen with fundamental and additional technical measures.
• No backtest or performance evidence is provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.